Sharp EL-738F Operation Manual page 43

2. Enter cash fl ow data.
• Refer to page 37 for instructions on entering cash fl ow data.
3. Press . < to begin discounted cash fl ow analysis.
• If a previously entered cash fl ow value is displayed, press
s to exit and then press . < .
4. To fi nd NPV or IRR, do the following:
To obtain NPV:
Enter the interest rate (discounted rate) into RATE(I/Y) and
press Q . Move to NET_PV and calculate by pressing i
and @ .
To obtain IRR:
Press @ to calculate IRR (RATE(I/Y)).
Note: If "Error 5" is displayed in step 4, or if you want to fi nd
another IRR, enter an estimated value into RATE(I/Y) and
calculate again in step 4.
1
Your company pays $12,000 for a new network system, and
expects the following annual cash fl ows: $3,000 for the fi rst year,
$5,000 for the second to fourth years, and $4,000 for the fi fth
year. At what IRR does the net present value of the cash fl ows
equal zero?
–$12,000
1. Enter cash fl ow data.
Procedure
Bring up the initial dis-
play in NORMAL mode.
Solving for unequal cash fl ows
$3,000 $5,000 $5,000 $5,000 $4,000
s
Key operation
1
*
41
Display
000